May-2024
This edition delves into the concept of ’empowerment’ – a vital skill for leaders, often misconstrued. A recent HBR article dispels the notion that the CEO is the sole decision-maker. So, how can CEOs and leaders effectively empower their teams while maintaining a safety net? Our featured article presents four potent strategies to enhance your decision-making prowess, illustrating their impact on organizational success. Additionally, uncover fascinating tidbits from organizations thriving on empowerment!
THE FOUR WAYS TO
EMPOWER YOUR TEAM
As the pace of change accelerates, a team’s probability of success is directly proportional to its ability to make quick decisions. Teams that are not used to making decisions will find this challenging. As leaders, here are four things to do to help teams build their decision making muscle.
Navigating with Boundaries:
What are the boundaries within which the decision should be made? This awareness gives teams an idea about the constraints they must consider when deciding. These boundary conditions are typically non-violable requirements for the organisation, such as quality, customer satisfaction, legal compliance, mandatory functional requirements, etc.
Knowledge of these conditions enhances the courage of the team, giving them the confidence that the decisions they make will not jeopardize what is valuable to the core of the company.
The Power of Information:
The team needs to understand the context within which the decision has to be made. They need to have access to information not limited to just technical or functional but including business aspects as well. Information that is complex to understand should be simplified and shared in ways that teams can understand. It also forms the basis for establishing a learning organisation.
Aligned Goals:
Goals and key performance indicators (KP|s) serve as guiding stars for teams. However, clarity is key. Too many goals breed confusion. Objectives must be clear, concise, and aligned with the company vision. When teams understand how their efforts contribute to overall success, decisions become strategic steps forward.
The Net Of Psychological Safety:
Decision-making is messy, and mistakes are inevitable. Psychological safety creates an environment where teams feel secure taking risks and learning from failures. Without this safety net, fear leads to conservative choices that hinder progress. By embracing failure as a learning opportunity, teams drive decisions based on what’s best for the company.
FROM AROUND THE WORLD
The Myth of the CEO as Ultimate Decision Maker
…the role of the CEO is not about making every decision but rather about creating an environment in which decisions are made effectively. By shaping decisions rather than making them, CEOs empower their teams, foster agility, and drive the organization toward success.
FROM THE WORLD OF SEMCO STYLE
You need information and a mandate, not a position to make decisions
… a story that shows how a truly empowered team – with access to information, clarity and alignment solved a real business problem that looked complex from the outside.
TRIVIA FOR YOU
DID YOU KNOW EMPLOYEES AT FRAPPE SET THEIR OWN SALARIES?
Frappe, a renowned Mumbai based company celebrated for its open-source ERP solutions, is also recognised for its distinctive management practices. By embracing the principles of “democratic management,” Frappe empowers its people and teams to make and own crucial decisions, even allowing employees to set their own salaries!
More in the series
Navigating Future of Work – June 2024
For resiliency, organisations need to shift to collaboration, where team members engage in collective problem solving, leverage diverse skills and perspectives.